Lennar (NYSE:LEN-B) vs. Cavco Industries (NASDAQ:CVCO) Head-To-Head Analysis

Lennar (NYSE:LEN-B) and Cavco Industries (NASDAQ:CVCO) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Lennar and Cavco Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	0	0	0	0	N/A
Cavco Industries	0	0	2	0	3.00

Cavco Industries has a consensus target price of $423.50, suggesting a potential upside of 9.47%. Given Cavco Industries’ higher possible upside, analysts clearly believe Cavco Industries is more favorable than Lennar.

Institutional & Insider Ownership

95.6% of Cavco Industries shares are owned by institutional investors. 1.6% of Cavco Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lennar and Cavco Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennar	N/A	N/A	N/A	N/A	N/A
Cavco Industries	$1.80 billion	1.78	$157.82 million	$18.35	21.08

Cavco Industries has higher revenue and earnings than Lennar.

Profitability

This table compares Lennar and Cavco Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lennar	N/A	N/A	N/A
Cavco Industries	8.12%	14.30%	10.81%

Summary

Cavco Industries beats Lennar on 8 of the 8 factors compared between the two stocks.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.